US' Los Angeles Board of Airport Commissioners approved (06-Aug-2012) a duty free merchandise concession agreement with DFS Group L.P. to develop and operate duty free and duty paid merchandise concessions in all passenger terminals at Los Angeles International Airport (LAX) for a period of 10 years with three additional one-year options. The agreement is forecast to produce revenue to Los Angeles World Airports (LAWA) of over USD100 million for the first fully developed year, and an average of over USD150 million annually over the initial 10-year term. DFS will be required to invest no less than USD25 million in initial improvements and USD17 million in mid-term refurbishment improvements. Under the terms of the agreement, DFS will be required to design, construct and operate all the duty free merchandise concessions throughout LAX, including a total of 13 stores consisting of approximately 37,600sqft. Within that square footage, the New Tom Bradley International Terminal (New TBIT) currently under construction is expected to have a single 14,000sqft store and a 9900sqft multi-unit in the core (or great hall) area of the terminal. Terminal 2 will have an area totaling approximately 4800sqft. Terminals 3, 4, 5, 6 and 7 will each have one duty free shop with an average 1160sqft. DFS also will have shops in Terminals 1 and 8 under the agreement, but these shops will begin operations as duty paid retail stores until airlines schedule international departing flights from these terminals. DFS also will have approximately 7900sqft of storage space in the ramp level of TBIT. The Board-approved agreement is subject to approval by the Los Angeles City Council. [more - original PR]
DFS Group awarded 10-year contract for duty free concessions at Los Angeles International Airport
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